New World Oil and Gas Plc announces an update with regards to its Blue Creek Project in Belize. The Company previously reported the date by which the Blue Creek Production Sharing Agreement will terminate, unless an additional well is spudded before that time, or unless extended by agreement with the Belize Government, as being 12 October 2015.
Further to recent legal advice in Belize, however, the Company has been informed that the definition of 'term' in the PSA refers to a period of 8 contract years. The contract year commences on the first day of the first calendar month following the effective date. Since the effective date is 12 October 2007, then the contract year commenced on 1 November and so the termination would be 31 October 2015.